The Hex Café

Group Project - Part 1

THE HXGN
OCTOBER 2023
Shayne Patrick Aguilar
Sheena Marie Villanueva
Nicolle Estephania Gomez Polanco
Iris Matta

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TABLE OF CONTENTS
................................................................................................................................................................... I
INTRODUCTION ......................................................................................................................................... 1
About the company .................................................................................................................................. 1
History ...................................................................................................................................................... 1
The Team .................................................................................................................................................. 1
Mission ...................................................................................................................................................... 1
Vision Statement ...................................................................................................................................... 1
Background .............................................................................................................................................. 1
Clients ....................................................................................................................................................... 1
Campaigns ................................................................................................................................................ 2
Focus of the Proposal............................................................................................................................... 2
Client Background ................................................................................................................................... 2
VALUE PROPOSITION ............................................................................................................................... 3
Hexagon Board Café: A connection of Culture and Gaming .............................................................. 3
Highlights of the Café's Value Proposition ........................................................................................... 3
KEY BENEFITS & POSITIONING ........................................................................................................... 5
Key Benefits.............................................................................................................................................. 5
Positioning ................................................................................................................................................ 6
TARGET MARKET ANALYSIS ................................................................................................................. 7
Segmentation ............................................................................................................................................ 8
SWOT ANALYSIS FOR THE HEX CAFÉ IN CALGARY ...................................................................... 10
Strengths ................................................................................................................................................. 10
Weaknesses ............................................................................................................................................. 10
Opportunities ......................................................................................................................................... 11
Threats .................................................................................................................................................... 11
Summary of SWOT Analysis ................................................................................................................ 12
CONCLUSION............................................................................................................................................ 13
Bibliography ................................................................................................................................................ 14

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INTRODUCTION

About the company

History

The Hexagon Board Game Café (https://thehexcafe.com/), located in Calgary, Alberta, Canada,
is a charming establishment with a fascinating journey. Founded by Kellie Ho and Randy Wong,
the cafe's inception is rooted in their shared love of board games and a strong desire to create a
unique social experience (The Hex Café, n.d.).

After graduating from architecture school in 2008, the duo faced challenges finding work in their
field, leading them to explore new avenues. Kellie and Randy's journey began with late nights of
playing The Settlers of Catan, and it continued during their time in South Korea, where they
discovered the concept of board game cafes. These cafes, blending board games with a good cup
of coffee or glass of wine, created a vibrant social environment that connected friends from
around the world. The experience left a lasting impact on Kellie and Randy, prompting them to
bring this idea back to Canada (The Hex Café, n.d.).

In 2014, after years of preparation and gathering a personal collection of over 400 board games,
Kellie and Randy's vision came to life with the opening of the first Hexagon Cafe in Edmonton,
Alberta. Two years later, they expanded to Calgary, responding to the growing popularity of
board games (The Hex Café, n.d.).

The Team

Presently, The Hexagon Board Game Café employs around 20 dedicated individuals, working
collectively to create a welcoming atmosphere for customers.

Mission

"To provide a space where individuals can come together, engage in games, and build lasting
connections through shared experiences."

Vision Statement

"To be the heart of the community, a place where people of all backgrounds gather, play, and
form meaningful bonds through the joy of board games and shared moments."

Background

Clients

The Hexagon Board Game Café caters to a diverse clientele, including board game enthusiasts,
social gamers, and individuals seeking a pleasant place to dine or unique social experience.

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Campaigns

The café's ongoing campaigns revolve around creating a friendly and interactive space where
customers can share memorable moments through board games.

Focus of the Proposal

Client Background

The Hexagon Board Game Café has a rich history of fostering connections through board games.
Its core values revolve around the love of playing board games and the belief that board games
are more than just entertainment; they are a means of building relationships.

Key 1: This report will delve into the café's background, exploring the foundations of their
success and their commitment to connecting people through shared experiences.

Key 2: The report will address the key factors influencing the café's current state, including its
product offerings, value proposition, and findings from SWOT analysis and target market
analysis.

Key 3: The report will also provide a strategic plan for the café's future growth and will be
recommended based on the comprehensive analysis of the Strategic Opportunity Matrix.

By presenting a thorough analysis and strategic recommendations, the report aims to help The
Hexagon Board Game Café continue its successful journey in providing exceptional board
gaming and social experiences to its customers.

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VALUE PROPOSITION

Hexagon Board Café: A connection of Culture and Gaming

Hexagon Board Café is more than just a cafe—it's a testament to the evolution of modern board
games, echoing the diverse design and cultural nuances of Eurogames (Woods, 2012) . This
unique integration of casual dining with a gaming experience is a brilliant reflection of how
board games have seeped into our societal fabric, reshaping our leisure activities and social
engagements (McGonigal, 2011).

Visiting the Hexagon Board Café is not just about food or drink; it's about diving into an
immersive world of board games. For a $4 per hour gaming fee, guests are granted access to a
vast collection of over 1,000 board games, catering to both newcomers and board game
enthusiasts.

When we think about value proposition, we think about the set of experiences an organization
can provide to their customers (Lanning, 1998, as cited in Payne et al, 2017). When a customer
visits The Hexagon Board Café, there is a high value they can retrieve when they decide to
acquire this $4/hourly gaming fee service.

Highlights of the Café's Value Proposition

The main highlights that help The Hex café build a strong value proposition regarding the
services are the following:

Fixed hourly rate: The café charges a gaming fee of $4 per hour per person. For this
price, customers have access to over 1,000 games without needing to buy them outright.
If we consider the average cost of a board game, according to their website, it ranges
between $30 and $100. Hence, playing multiple games at The Hexagon is much more
economical than buying each one individually (Woods, 2012)

Space and maintenance savings: For the $4 hourly cost, customers not only avoid the
initial investment of buying a game but also sidestep maintenance costs and risks such as
damage from humidity or other occasional hazards, which would not be a customer's
responsibility.

Expert guidance: The $4 per hour fee includes access to Hexagon's "Hexperts", who can
assist customers with game recommendations or clarifications on rules. This specialized
guidance enhances the customer experience and adds value to the hourly fee. When
considering the time it takes to read and learn a game on one's own, or the cost of private
lessons/tutorials to understand a board game, this becomes invaluable, thereby enhancing
the gaming experience and aligning with McGonigal's assertion of games being
transformative tools (McGonigal, 2011)

Try-Before-You-Buy option: Additionally, if a customer falls in love with a particular

game while enjoying the service, The Hexagon offers the option to purchase games,
either in-store or online. This means that the $4 per hour can be an opportunity to test out
a game and ensure they are making the right investment.
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 The Hex Café

A hub for genuine human interaction: The slogan "Creating Rewarding Connections"
is not just a marketing phrase. For $4 an hour, the café provides a comfortable, clean, and
cozy space to foster friendships and build relationships, a much-needed option in an
increasingly digitized world (McGonigal, 2011).

The service provided in the café represents an alternative where customers can get to
interact with each other in a safe environment sharing a topic they both are interested,
they are able to socialize and build connections, aligning with one of the main benefits
that the owners were able to get when playing board games, and that served as an
inspiration for the cafe.

The Hexagon Board Game Café's value proposition revolves around offering access to an
extensive game collection, expert advice, and a social environment for a very reasonable fee of
$4/hour. It presents excellent value for money for customers, as it allows them to indulge in a
comprehensive board gaming experience without incurring the high costs associated with
purchase and maintenance. Additionally, and most remarkable, the opportunity for social
interaction creates a robust and appealing value proposition for its patrons in Calgary as it
follows one of the core values set by the owners. The relationship between the product and the
price customers pay is naturally tied to the rich variety of experiences and connections the café
continually promises and delivers.

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KEY BENEFITS & POSITIONING

Below are the key benefits that position Hexagon as a unique and inclusive space for a diverse
clientele, whether they are avid gamers, casual visitors, families, or those seeking a pleasant
place to dine and socialize. Hexagon's commitment to community, accessibility, and customer
engagement is central to its marketing strategy and value proposition. (The Hex Café, n.d.)

Key Benefits

1. Diverse Entertainment Hub: The Hexagon positions itself as a versatile

establishment that combines the elements of a board game cafe, coffee shop, and
retail store. This diversity offers customers a range of experiences in one place,
appealing to a broad audience with varied interests.

2. Community Engagement: Hexagon fosters a strong sense of community by hosting

special events like Dungeons & Dragons, group meetups, and board game
tournaments. This focus on community-building creates a unique and inviting
atmosphere for customers.

3. Extensive Game Library: With over 1,000 games, Hexagon ensures a game for
everyone, from novice players to seasoned gamers. The presence of "Hexperts" to
provide game recommendations and instruction adds value to the customer
experience.

4. Flexible Pricing Model: Hexagon's pricing model, with a $4 per hour gaming fee
alongside a food or beverage purchase, gives customers the flexibility to enjoy
gaming and dining. This approach encourages customers to stay longer and enjoy the
available offerings.

5. Accessibility and Fair Seating: By not accepting reservations and offering seating
on a first-come, first-served basis, The Hexagon ensures an accessible and democratic
experience. This approach appeals to spontaneous visits and minimizes potential
exclusivity.

6. Alcohol Service: The availability of alcoholic beverages, including beer, wine, and
cocktails, enhances the entertainment aspect of board game nights and caters to a
diverse customer base.

7. Family-Friendly Environment: The Hexagon welcomes guests of all ages,

emphasizing that board games suit everyone. The family-friendly approach broadens
its appeal and provides entertainment for kids and adults.

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8. BYOG (Bring Your Own Games): With proper communication, The Hexagon's
policy of allowing customers to bring their games adds a personal touch and promotes
a sense of ownership and comfort.

9. Game Purchase and Rental Options: The opportunity to purchase games in-store
and online or to rent games for trial purposes extends the customer’s journey beyond
the cafe and encourages continued engagement (The Hex Café, n.d.).

Positioning

The Hexagon recognizes the need for a diverse and inclusive social space that caters to a wide
range of customer interests. They fulfil the need for a place where individuals can enjoy coffee,
games, and build a sense of community. They emphasize the quality of the experience it provides
(The Hex Café, n.d.).

The café associates its brand with a specific use: a versatile and welcoming gaming and social
interaction hub. Customers can come to Hexagon to relax, work, study, or socialize while
enjoying coffee, games, and community events. They position itself as a unique and standout
establishment that combines coffee, gaming, and community in one place, making them stand
out in the competitive market.

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TARGET MARKET ANALYSIS

The Hexagon appears to target a diverse group of customers, primarily focusing on individuals
interested in gaming and coffee shop culture. Their target market could include:

Figure 1. Illustration of target market of The Hexagon Board Game Café

Gamers: This is the primary target audience. The Hex café caters to gamers who enjoy various
forms of gaming, such as tabletop games, and board games. Gamers who want to socialize with
like-minded individuals, seek gaming recommendations, or participate in gaming events would
be attracted to Hexagon.

Coffee Enthusiasts: The Hexagon aims to provide a cafe experience, hence people looking for a
place to relax, work, or socialize while enjoying coffee may be drawn to the establishment.

Community-Minded Individuals: The Hex café promotes a sense of community by offering

events like Dungeons & Dragons sessions, group meetups, and board game tournaments. This
would appeal to individuals who value social interactions and want to connect with others who
share their interests.

Casual Gamers: The Hexagon is not solely focused on hardcore gamers but also welcomes
casual gamers who want to try new games and learn about gaming. They offer game instruction,
which can be attractive to individuals new to gaming.

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 The Hex Café

People Looking for Unique Retail Options: The retail store component might attract those
interested in gaming-related merchandise, whether video game consoles, board games,
collectibles, or accessories.

It's important to note that The Hexagon's target market might evolve over time and could be
influenced by the establishment's specific location and the local community's preferences. The
key to their success is to create a welcoming and inclusive environment that caters to a broad
range of interests within the gaming and coffee culture.

Segmentation

Age The Hexagon caters to a diverse age range,

including kids and adults. They offer a variety
of board games suitable for different age
groups.
Income Pricing can be adjusted to target various
income levels. Some customers may be
Demographic willing to spend more on premium coffee or
alcoholic drinks, while others may seek more
budget-friendly options.
Family Status The Hexagon welcomes both individuals and
groups. Families, couples, and friends can
enjoy the cafe's services, making it family
friendly.
Country Canada
State Alberta
Geographic
City Calgary and Edmonton
Density Urban, Suburban
Lifestyle The Hex café appeals to individuals who
enjoy board games and social gatherings. It
caters to a lifestyle that values leisure,
entertainment, and community engagement.
Psychographic
Activities Competitive
Interests The café attracts people interested in board
games, role-playing games like Dungeons &
Dragons, and community events.
Frequency of Visit Some customers may visit café frequently,
while others may be occasional visitors or
first-time customers.
Behavioral
Gaming Behavior Consider the gaming expertise level, whether
customers are casual gamers or enthusiasts.
Some may be interested in game

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recommendations and instruction, while

others prefer competitive events.
Customer status First-time customer and regular customer
Purchase behavior The Hexagon offers a range of products and
services, including food, drinks, board games,
and retail items. Customer purchasing
behavior may vary based on their preferences
for these offerings.

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SWOT ANALYSIS FOR THE HEX CAFÉ IN CALGARY

Strengths Weaknesses Opportunities Threats

• Unique Concept
• Location
• Game Selection
• Experienced Staff
• Customer Loyalty
• Competition • Events and
• Operational Costs Tournaments
• Seasonal Demand • Partnerships
• Limited Menu • Online Presence
• Marketing and • Menu Expansion
Visibility • Catering and Private
Events
• Economic Downturn
• Health Regulation
• Changing Consumer Trends
• Online Competitors
• Rising Costs

Strengths
In the competitive world of food and entertainment, The Hexagon Board Game Cafe in Calgary stands
out due to a number of distinctive advantages. To start with, its original design provides both board game
enthusiasts and beginners with an exciting and enjoyable experience. The cafe provides a warm
environment where customers can take it easy and play a wide variety of board games while enjoying
food and beverages. This unique idea appeals to a wider audience who seeks a new type of social
entertainment as well as to passionate gamers.
Likewise, The Hexagon's advantageous location adds to its appealing qualities. The café enjoys a
strategic advantage because it is positioned in a prominent region with significant foot traffic and
accessibility. In addition to offering convenience for its intended audience, this position also boosts
visibility, making it more likely for passersby to be enticed by the concept and step inside.
The Hexagon's strength is further enhanced by the wide variety of games it offers. The cafe makes sure
that there is something for everyone by providing a wide variety of board games that cater to different
preferences and ability levels. This wide variety generates a vibrant and welcoming environment where
both experienced players and newbies can find games that suit their interests.
Another important advantage is the staff's amount of expertise. The Hexagon hires board game industry
experts who can assist clients in selecting and playing games, improving the whole experience. In
addition to helping with game selection, the knowledgeable staff create a sense of belonging and trust
among customers.
Finally, The Hexagon has successfully established a foundation of loyal customers. Through its original
idea pleasant setting, and excellent service, Customers who are loyal and interested created an affection
for the cafe. These customers frequently become advocates, promoting good word-of-mouth, and
assisting the cafe's development. Their dedication is a testament to the cafe's ability to provide a fulfilling
and memorable gaming and dining experience.

Weaknesses

Some innate flaws in The Hexagon Board Game Café might limit its long-term popularity. In
Calgary, many entertainment and food alternatives compete for the same customers, which is a
significant challenge. Due to the competition from other sports cafés and entertainment spots, it
is necessary to constantly innovate to stand out and keep customers interested.

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In addition, the café struggles with the significant operating expenses associated with building
and maintaining a sizable collection of board games, which can affect profitability.
Furthermore, Calgary’s varying seasonal demand needs adaptable company tactics to manage
times of lesser traffic successfully. Hexagon must think of creative ways to stand out from the
competition, improve its menu to appeal to more customers and implement cost-effective
inventory management to address these issues.
Opportunities

The Hexagon Board Game Cafe is in a good position to take advantage of numerous chances that
can further boost its reputation in Calgary's entertainment industry. The planning of events and
competitions is a key growing area. The Hexagon can draw in a larger and more attentive
clientele by holding themed nights, regular tournaments, and unique gaming activities. These
events build a strong sense of connection among customers as well as providing a different form
of revenue. The cafe is a popular spot for both talented gamers and people looking for fun and
interesting entertainment because it fosters a lively and friendly environment. These occasions
may also create buzz and word-of-mouth advertising, bringing in more customers to the cafe.
Another intriguing possibility is exploring collaborations with regional game vendors,
publishers, or gaming organizations. Collaborations with these organizations may result in the
release of exclusive games, tie-ins with marketing campaigns, and extended offers that appeal to
a wider range of players. These alliances may make it easier to acquire rare and popular games,
which will increase the cafe's popularity.
Additionally, establishing a stronger online presence via social media and a company website is
a big growth opportunity. The Hexagon may interact with clients who are outside of its physical
location by participating in the gaming community online. This helps with marketing and
promotions.
Threats

There are several major concerns that the Hexagon Board Game Cafe must take into account.
The vulnerability to economic downturns is one serious potential threat. The cafe's success is
strongly associated with the amount spent on dining and entertainment, which is liable to change
during periods of economic downturn or recession. Reduced consumer wealth may have an
influence on customer spending and visitation, needing flexible pricing and marketing tactics to
be profitable. likewise, the unpredictability put on by economic downturns shows the
significance of maintaining a solid and flexible business plan.
Government health laws and pandemic-related restrictions are a significant additional concern.
Like many dining and entertainment venues, The Hexagon is prone to sudden closures or
capacity limitations because of health and safety considerations. Unexpected limitations and
health emergencies can severely disrupt regular operations, resulting in revenue loss and possibly
long-term harm to the company's financial stability. The Hexagon must be diligent in following
health and safety procedures and have backup plans ready in case any further outages occur to
lessen this threat. One example of that is when covid hits the whole world there’s limitation for
travel and leisure which people cannot go outside to hangout due to pandemic.

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The Hexagon is also seriously threatened by the constantly shifting consumer trend landscape.
Board gamers and other people looking for entertainment's feels and interests can change over
time. In order to remain current, the cafe must constantly change both its gaming selection and
its offerings. If you don't, you risk losing customers and seeing a drop in visitors. This risk can
be reduced by keeping an eye out for new trends and making research and development
investments.
A major challenge has been brought up by the rapid expansion of technology and online
gaming. Potential customers may choose to avoid visiting physical board game cafes because of
the accessibility and convenience of online board games.
In order to battle this threat, The Hexagon can look at ways to include digital offerings or
gamified components into its services, closing the gap between the real-world and virtual gaming
worlds. In a community that has become more dependent on technology, using online resources
like an engaging web presence or providing virtual events might help the café maintain its
competitive edge. To meet these obstacles and maintain The Hexagon's success in the face of
changing threats, it is necessary to maintain constant awareness, adaptation, and strategic
planning. Online games and mobile games are one of the example here where people nowadays
are use to play games using mobile phones or computers.
Summary of SWOT Analysis

To summarize our SWOT Analysis, The Hexagon Board Game Cafe stands out in the tough
entertainment and dining market thanks to a number of distinctive qualities. Its original idea
mixes a large selection of board games with a welcoming cafe setting to appeal to both board
game enthusiasts and a wider audience seeking a different form of social entertainment. The cafe
is strategically positioned in an area with excellent visibility and accessibility, which increases its
appeal. A committed and knowledgeable workforce also contributes to the strengths, creating a
sense of belonging and trust among customers. Additionally, the cafe benefits from client
loyalty, which promotes repeat business and effective word-of-mouth advertising.
The Hexagon, however, has some serious limitations. It's difficult to stand out in Calgary's
entertainment and dining scene, and the expense of running a sizable board game library might
hurt profitability. Additional issues include a limited menu selection and seasonal variations in
demand.
Despite these flaws, the cafe can benefit from chances by holding events and competitions,
forming alliances with neighborhood gaming businesses, and boosting its internet presence. But
it must also continue to be on watch against challenges like recessions, health laws, shifting
consumer tastes, and the emergence of internet rivals. The Hexagon can effectively traverse the
challenging board game cafe market in Calgary by capitalizing on its advantages, correcting its
weaknesses, and capturing opportunities while averting threats.

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CONCLUSION & RECOMMENDATIONS

In conclusion, the key findings from the SWOT and Target Market Analysis provide valuable
insights into The Hexagon Board Game Café's current status and future prospects. The café's
strengths, such as its unique concept, strategic location, diverse game selection, experienced
staff, and loyal customer base, position it as a prominent player in Calgary's competitive dining
and entertainment scene.

However, it's important to address the identified weaknesses to ensure the café's sustained
success. These weaknesses encompass stiff competition, operational costs, seasonal demand
fluctuations, a limited menu, and marketing challenges.

Within this context, numerous opportunities have surfaced, offering pathways for growth and
improvement. These opportunities include hosting events and tournaments, forming strategic
partnerships, expanding the online presence, diversifying the menu, and catering for private
events. Leveraging these opportunities can bolster The Hexagon's market position.

Nevertheless, the analysis has unveiled potential threats that necessitate proactive management.
These threats include economic downturns, health regulations, changing consumer trends, the
ascent of online competitors, and rising costs. Addressing these threats requires adaptable
business strategies and a commitment to ongoing adaptation.

After conducting a comprehensive analysis of The Hexagon Board Game Café's current situation
and considering the opportunities outlined in Ansoff’s Strategic Opportunity Matrix, the
recommended strategic plan for the café's future growth is "Market Development." Market
Development involves leveraging existing products to enter new markets (Lamb et al, 2021). In
this context, The Hexagon can expand its customer base by targeting new geographical locations,
beyond its current presence in Calgary and Edmonton, or by exploring untapped demographics
within its existing cities.

Expanding to new areas or demographics will allow The Hexagon to introduce its unique board
game café concept to a wider audience, increasing brand recognition and customer reach.
Identifying promising new markets and developing a marketing strategy tailored to these new
customer segments is crucial to success.

In aligning with The Hexagon’s core values of cultivating connections through board games, this
strategic plan further solidifies the café’s status as a community hub for gaming and social
interaction. It will also help mitigate potential threats, such as changing consumer trends and the
rise of online competitors, by diversifying the customer base and revenue streams.

By pursuing Market Development, The Hexagon Boardgame Café can continue to provide
exceptional board gaming and social experiences to a broader audience, ensuring sustained
growth and success in the competitive market.

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Bibliography

Lamb, C. W., Hair, J. F., & McDaniel, C. (2021). Principles of Marketing. Cengage.

McGonigal, J. (2011). Reality Is Broken: Why Games Make Us Better and How They Can
Change the World. Penguin Press.

Payne, A., Frow, P. & Eggert, A. The customer value proposition: evolution, development, and
application in marketing. J. of the Acad. Mark. Sci. 45, 467–489 (2017).
https://doi.org/10.1007/s11747-017-0523-z

The Hex Café. (n.d.). About us. The Hex Café: https://thehexcafe.com/about-us/

The Hex Café. (n.d.). The Hexagon Board Game Café. The Hex Café: https://thehexcafe.com/

Woods, S. (2012). Eurogames. McFarland.

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